Reconciling your accounts in QuickBooks Online is a straightforward process that can help you keep your finances organized and accurate. By following these simple steps, you can ensure that your records match your bank or credit card statement and avoid any discrepancies or errors.
Reconciling your accounts is an important part of managing your finances in QuickBooks Online. It allows you to compare your records with your bank or credit card statement and make sure that everything is accurate and up-to-date. In this article, we'll provide step-by-step instructions on how to reconcile an account in QuickBooks Online.
- Step 1: Select an account to reconcile
- Step 2: Start the reconciliation
- Step 3: Review and match transactions
- Step 4: Finish the reconciliation
- Step 5: Review past reconciliations
- Step 6: Edit completed reconciliations
Step 1: Select an account to reconcile
Once you have your monthly bank or credit card statement, you can start reconciling. If you need to reconcile more than one month, do them one statement at a time, starting with your oldest statement.
To get started, navigate to the Reconcile page in QuickBooks Online (Take me there). You can do this by clicking on the Gear icon in the upper-right corner of the screen and selecting Reconcile from the drop-down menu.
Once you're on the Reconcile page, select the account you want to reconcile from the Account drop-down menu. Make sure that the account you select matches the account you're reconciling on your bank or credit card statement.
Step 2: Start the reconciliation
If your accounts are connected to online banking, make sure you match and categorize all of your downloaded transactions.
Note: If you see a message about a previous reconciliation, you need to fix this before you start. Select We can help you fix it.
- Review the Beginning balance. Make sure the beginning balance in QuickBooks matches the one on your statement. Here's what to do if they don't match.
- Enter the Ending balance and Ending date as they appear on your bank or credit card statement. Some banks call the ending balance a new balance or a closing balance.
- If you see it, review the Last statement ending date. This is the end date of your last reconciliation. Your current bank statement should start the day after.
- When you're ready to start, select Start reconciling.
Step 3: Review and match transactions
After entering the statement date and ending balance, you'll see a list of transactions that need to be reviewed and matched. Go through each transaction and ensure that it matches the transactions on your bank or credit card statement. You can also mark transactions as cleared or add new transactions that may be missing.
If all of your transactions come directly from your bank, reconciling should be a breeze. In some cases, your accounts may already be balanced. If they are not, the process is the same, but it might just take a little longer.
- Start with the first transaction on your statement.
- Find the same transaction in the Reconciliation window in QuickBooks.
- Compare the two transactions. If they match, put a checkmark next to the amount in QuickBooks. This marks it as reconciled.
- If a transaction doesn't appear on your statement but you see it in QuickBooks, don't put a checkmark beside it.
- Compare each transaction on your statement with what's in QuickBooks.
Tip: If you're absolutely sure you've found a match but a small detail isn't quite right, such as the payee, don't worry. Select the transaction in QuickBooks to expand the view, then select Edit. Make edits so the details match your statement.
Step 4: Finish the reconciliation
Once you've reviewed and matched all transactions, QuickBooks will calculate the difference between your records and your bank or credit card statement. If the difference is zero, you've successfully reconciled your account. If the difference is not zero, you may need to review your transactions again to find any discrepancies.
When you reach the end of your transactions, the difference between your statement and QuickBooks should be CA $0.00. If it is, select Finish now.
If the difference isn't CA $0.00, or you can't find a transaction that should be in QuickBooks, don't worry. Here's how to review and fix everything.
Once the difference is $0, you’ve completed the reconciliation process. You can also save your progress and finish later if needed.
Step 5: Review past reconciliations
If you need to review past reconciliations, you can run a reconciliation report to review your work:
- Select Settings and then select Reconcile (Take me there).
- Select History by account.
- Use the drop-down menus to select the account and date range. Or, print or export your reconciliation reports if you need to share them.
Step 6: Edit completed reconciliations
You can make changes to past reconciliations, but be careful. Changes to completed reconciliations can unbalance your accounts and other reconciliations. It also affects the beginning balance of your next reconciliation.
Start by reviewing a previous reconciliation report. If you reconciled a transaction by mistake, here's how to unreconcile it. If you adjusted a reconciliation by mistake or need to start over, reach out to your accountant. These kinds of changes get complicated.
Reconciling your accounts is an essential part of managing your finances in QuickBooks Online. By following the steps above, you can reconcile your accounts accurately and ensure that your records match your bank or credit card statement. Remember to regularly reconcile your accounts to maintain financial accuracy and avoid discrepancies.